Director (refineries) M Rohtagi said that Rs 1,300 crore has already been spent. The modernisation plan is expected to be over by the fiscal-end. The plan involves enhancing the refinery capacity to 12 mtpa from the existing about 9 mtpa.
BPCL sells about 20 mt of products out of which only a small share comes from its refinery in Mumbai. The remaining demand is met from its subsidiary refining companies based in Kochi and Numaligarh.
The company is planning to widen the range of crude its refinery can process. The Mumbai refinery was originally designed to handle crude from Bombay High which is sweet (lower sulphur content). However, the refinery has been processing less crude from Bombay over the years. At present, its refinery is using only about 4 mt of Bombay High crude compared to over 6 mt in 1992.
The company imports most of its crude requirement and is now considering to approach countries like Angola and Libya. We have received offers from Australia but freight is an issue, he said.
The Mumbai refinery now in its 50th year of inception aiming at reduction of source emission. The sulphur content at the end of the modernisation project will stand reduced to 0.015 per cent in motor spirit (petrol) and 0.035 per cent in diesel.
After RMP it is estimated that additional investment of Rs 1200 crore would be required to meeting Euro IV requirements. Besides RMP, the company is also going in for Rs 110 crore plan for cracking reforming unit. This is also expected to be completed by the year-end.
(Travel for the story was sponsored by BPCL)